Arthur van Benthem

All Courses

• ACCT7640 - Climate and Financial Markets

  Climate change might be the defining challenge of our times, with a wide range of effects on financial markets and the broader economy. At the same time, financial markets play an important role in financing the transition to a net-zero economy. This role, however, is shaped by the information that is available to market participants. In this course, we examine how climate risks—both physical and regulatory—affect firms, financial markets (including carbon and renewable-energy certificate markets), and markets for energy and real estate. We examine the role that firms’ disclosures and third-party information sources play. As climate change is high on the agenda of almost every company and government, this course will be valuable both for students with the ambition to pursue a career centered around sustainability and those who want to gain a better understanding of how climate issues affect more traditional roles in the financial sector, consulting, or non-profits. The starting point for this course is that financial market participants increasingly realize that climate change represents an important investment risk. One central concern focuses on transition risks, and in particular on the effects that regulatory responses to climate change have on the business models of carbon-intensive energy companies. We discuss how concerns about various climate risks influence the way investors allocate their capital and exercise their oversight of firms. We start with the price impacts of climate risks in equity, debt and real estate markets, including the role played by shareholder activism and engagement, divestment and portfolio alignment. Next, we study carbon markets with a focus on pricing and discuss strategies to hedge climate risks through financial instruments such as carbon or renewable-energy credits and derivative contracts. We then explore how different firms in the global energy sector—ranging from oil & gas to renewable energy to electric utilities—have responded to climate-related pressures from their investors and other stakeholders. Because outsiders’ reactions depend on the information that they have, we investigate the impact of ESG reporting on financial markets and on the choices that managers make. Here, we also discuss the costs and benefits of regulating ESG reporting and the impact of greenwashing. We pay special attention to the impact of climate risk and reporting on decisions inside organizations, such as spin-offs, hedging, catastrophe insurance, and the structure of executive-compensation contracts. Further topics include life-cycle emissions and the social cost of carbon.

• BEPP2630 - Environ. & Energy Econ

  This course examines environmental and energy issues from an economist's perspective. Over the last several decades, energy markets have become some of the most dynamic markets of the world economy, as they experienced a shift from heavy regulation to market-driven incentives. First, we look at scarcity pricing and market power in electricity and gasoline markets. We then study oil and gas markets, with an emphasis on optimal extraction and pricing, and geopolitical risks that investors in hydrocarbon resources face. We then shift gears to the sources of environmental problems, and how policy makers can intervene to solve some of these problems. We talk about the economic rationale for a broad range of possible policies: environmental taxes, subsidies, performance standards and cap-and-trade. In doing so, we discuss fundamental concepts in environmental economics, such as externalities, valuation of the environment and the challenge of designing international agreements. At the end of the course, there will be special attention for the economics and finance of renewable energy and policies to foster its growth. Finally, we discuss the transportation sector, and analyze heavily debated policies such as fuel-economy standards and subsidies for green vehicles. Prerequisites: An introductory microeconomics course (ECON1, or another course approved by the instructor) will be sufficient in most cases; BEPP 250 or an equivalent intermediate microeconomics course is recommended.

• BEPP2990 - Independent Study

• BEPP7630 - Energy Markets & Policy

  Over the last several decades, energy markets have become some of the most dynamic markets of the world economy. Traditional fossil fuel and electricity markets have been seen a partial shift from heavy regulation to market-driven incentives, while rising environmental concerns have led to a wide array of new regulations and "environmental markets". The growth of renewable energy could be another source of rapid change, but brings with it a whole new set of technological and policy challenges. This changing energy landscape requires quick adaptation from energy companies, but also offers opportunities to turn regulations into new business. The objective of this course is to provide students with the economist's perspective on a broad range of topics that professionals in the energy industry will encounter. Topics include the effect of competition, market power and scarcity on energy prices, the impact of deregulation on electricity and fossil fuel markets, extraction and pricing of oil and gas, geopolitical uncertainty and risk in hydrocarbon investments, the environmental impact and policies related to the energy sector, environmental cap-and-trade markets, energy efficiency, the economics and finance of renewable energy, and recent developments in the transportation sector.

• BEPP7640 - Climate and Financial Markets

  Climate change might be the defining challenge of our times, with a wide range of effects on financial markets and the broader economy. At the same time, financial markets play an important role in financing the transition to a net-zero economy. This role, however, is shaped by the information that is available to market participants. In this course, we examine how climate risks—both physical and regulatory—affect firms, financial markets (including carbon and renewable-energy certificate markets), and markets for energy and real estate. We examine the role that firms’ disclosures and third-party information sources play. As climate change is high on the agenda of almost every company and government, this course will be valuable both for students with the ambition to pursue a career centered around sustainability and those who want to gain a better understanding of how climate issues affect more traditional roles in the financial sector, consulting, or non-profits. The starting point for this course is that financial market participants increasingly realize that climate change represents an important investment risk. One central concern focuses on transition risks, and in particular on the effects that regulatory responses to climate change have on the business models of carbon-intensive energy companies. We discuss how concerns about various climate risks influence the way investors allocate their capital and exercise their oversight of firms. We start with the price impacts of climate risks in equity, debt and real estate markets, including the role played by shareholder activism and engagement, divestment and portfolio alignment. Next, we study carbon markets with a focus on pricing and discuss strategies to hedge climate risks through financial instruments such as carbon or renewable-energy credits and derivative contracts. We then explore how different firms in the global energy sector—ranging from oil & gas to renewable energy to electric utilities—have responded to climate-related pressures from their investors and other stakeholders. Because outsiders’ reactions depend on the information that they have, we investigate the impact of ESG reporting on financial markets and on the choices that managers make. Here, we also discuss the costs and benefits of regulating ESG reporting and the impact of greenwashing. We pay special attention to the impact of climate risk and reporting on decisions inside organizations, such as spin-offs, hedging, catastrophe insurance, and the structure of executive-compensation contracts. Further topics include life-cycle emissions and the social cost of carbon.

• OIDD2630 - Environ. & Energy Econ

  This course examines environmental and energy issues from an economist's perspective. Over the last several decades, energy markets have become some of the most dynamic markets of the world economy, as they experienced a shift from heavy regulation to market-driven incentives. First, we look at scarcity pricing and market power in electricity and gasoline markets. We then study oil and gas markets, with an emphasis on optimal extraction and pricing, and geopolitical risks that investors in hydrocarbon resources face. We then shift gears to the sources of environmental problems, and how policy makers can intervene to solve some of these problems. We talk about the economic rationale for a broad range of possible policies: environmental taxes, subsidies, performance standards and cap-and-trade. In doing so, we discuss fundamental concepts in environmental economics, such as externalities, valuation of the environment and the challenge of designing international agreements. At the end of the course, there will be special attention for the economics and finance of renewable energy and policies to foster its growth. Finally, we discuss the transportation sector, and analyze heavily debated policies such as fuel-economy standards and subsidies for green vehicles. Prerequisites: An introductory microeconomics course (ECON1, or another course approved by the instructor) will be sufficient in most cases; BEPP 250 or an equivalent intermediate microeconomics course is recommended.

• OIDD7630 - Energy Markets & Policy

  Over the last several decades, energy markets have become some of the most dynamic markets of the world economy. Traditional fossil fuel and electricity markets have been seen a partial shift from heavy regulation to market-driven incentives, while rising environmental concerns have led to a wide array of new regulations and "environmental markets". The growth of renewable energy could be another source of rapid change, but brings with it a whole new set of technological and policy challenges. This changing energy landscape requires quick adaptation from energy companies, but also offers opportunities to turn regulations into new business. The objective of this course is to provide students with the economist's perspective on a broad range of topics that professionals in the energy industry will encounter. Topics include the effect of competition, market power and scarcity on energy prices, the impact of deregulation on electricity and fossil fuel markets, extraction and pricing of oil and gas, geopolitical uncertainty and risk in hydrocarbon investments, the environmental impact and policies related to the energy sector, environmental cap-and-trade markets, energy efficiency, the economics and finance of renewable energy, and recent developments in the transportation sector.

• What energy-efficient products for the home offer the best return on investment?, WalletHub - 10/15/2024

Knowledge at Wharton

• How Dynamic Electricity Pricing Can Improve Market Efficiency, Knowledge at Wharton - 11/12/2024
• How Accountable Capitalism Can Help the ESG Movement, Knowledge at Wharton - 9/12/2023
• Wharton Executive Education ESG Panel: Dispatch From the Front Lines of Accountable Capitalism, Knowledge at Wharton - 9/12/2023
• Tracking the Financial Stakes in Curbing Emissions, Knowledge at Wharton - 10/18/2022
• How Price Shocks in Formative Years Scar Consumption for Life, Knowledge at Wharton - 5/16/2022
• Are Emissions Standards Helping to Curb Air Pollution?, Knowledge at Wharton - 8/30/2021
• Oil Price Shock: What It Means for Producers and Consumers, Knowledge at Wharton - 4/28/2020
• Are Weaker Fuel Economy Standards Based on Faulty Logic?, Knowledge at Wharton - 2/5/2019
• When Will Electric Cars Go Mainstream?, Knowledge at Wharton - 1/6/2017
• Why Trump Should Embrace – Not Ditch – Green Energy, Knowledge at Wharton - 12/2/2016

Wharton Stories

• Research Spotlight: Prof. Arthur van Benthem on New Cars, Old Cars, and Air Pollution Today, Wharton Stories - 08/26/2021
• From Sustainability to BEES: How This MBA Student Updated and Expanded Her Major, Wharton Stories - 12/17/2018
• How This Wharton MBA is Paving His Future in Clean Energy Through the Kleinman Certificate Program, Wharton Stories - 10/04/2018
• Prof. Arthur van Benthem Examines Energy and Environmental Markets Through an Economist’s Lens, Wharton Stories - 01/23/2017
• Prof. Arthur van Benthem Talks About the Intersection of Corporate Strategy and Government Energy Policy, Wharton Stories - 01/23/2017